City of Baltimore Extends $5 Million Business Contract with TeleCommunication Systems, Inc.

Business Editors/High-Tech Writers

ANNAPOLIS, Md.--(BUSINESS WIRE)--May 29, 2003

TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS), an expert in highly reliable and secure communications for government customers and a global leader in location and messaging software and E9-1-1 services for mobile operators, today announced it has been awarded a one-year extension of the Network and Systems Support contract by the City of Baltimore Board of Estimates.

In September of 1998, TCS was awarded a three year Network and Systems Support Contract with two one-year extension options. After this successful engagement with TCS, The Board of Estimates approved the recommendation to extend the TCS contract for an additional year.

The contract is under the direction of the Mayor's Office of Information Technology, Elliot Schlanger, Chief Information Officer, and provides network and support services throughout City government including key departments such as The Mayor's Office of Information Technology, Finance, Public Works, Police and Health.

"TCS continues to deliver first-rate information technology support services to the City of Baltimore. As TCS' value has continued to prove itself, our partnership has grown to include support for additional departments within the City," says Schlanger. "Ultimately, the citizens are the benefactors of TCS' value-added services."

The City of Baltimore is dedicated to implementing its Strategic Information Technology Plan for complex network systems integration, while maintaining its current high standards for operational capability and performance.

With the Network System Support contract, TeleCommunication Systems supports the city in building an integrated, centralized, fully interoperable architecture that enhances system response, decreases maintenance costs and reduces employee training time for the City of Baltimore.

"We are pleased that the City of Baltimore has chosen to extend our partnership. Through our close work with City officials and the community of end-users, we are doing our part to contribute to the success of the City's strategic plan," stated Michael Patrick, Vice President of TCS' Network Solutions Group. "We believe that TCS continues to represent the best-value to the City of Baltimore."

ABOUT TCS' NETWORK SOLUTIONS GROUP

TCS' Network Solutions Group mission is to develop integrated voice, video and IP-based data and messaging systems to meet the unique requirements of customers for worldwide communication solutions.

The Network Solutions Group's engineering services and technology capabilities enable TCS to provide rapid deployment of fixed and transportable solutions via satellite, wireless and terrestrial networks; helping its customers conduct mission critical communications anywhere in the world.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS)(NASDAQ:TSYS) is a leading provider of software and solutions to wireless telecommunication carriers worldwide and to government customers requiring high reliability and security. The company's Network Software segment is a global leader in wireless location platforms, text messaging, and alerts.

The Service Bureau segment provides enhanced 9-1-1 connections to public safety call centers for the largest US wireless carriers, as well as hosted wireless text messaging services. The Solutions segment enables rapid deployment of fixed and transportable communications systems using wireless, satellite, and terrestrial networks.

TCS makes connections that matter. Whether connecting people with voice, data or video in a wireless world or connecting our customers and shareholders with long-term value, TCS delivers competitive, reliable and secure products, services and solutions to meet these needs. For more information visit www.telecomsys.com.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended.

These statements are based upon TCS' current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated.

The actual results realized by the Company could differ materially from the statements made herein, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission (SEC).

These include without limitation risks and uncertainties relating to the Company's financial results and the ability of the Company to (i) reach profitability as early as anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand its products and services, (iii) conduct its business in foreign countries, (iv) adapt and integrate new technologies into its products, (v) expand its business offerings in the new wireless data industry, (vi) develop software without any errors or defects, (vii) protect its intellectual property rights, and (viii) implement its sales and marketing strategy.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.